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FHL Plans, Investments and Divestments From AGM

Fijian Holdings Limited Group has revealed plans to take a list a number of its existing subsidiaries on the stock exchange. FHL Group chief executive, Nouzab Fareed, confirmed this would
24 Oct 2015 11:58
FHL Plans, Investments and Divestments From AGM
Fijian Holdings Limited CEO - Nouzab Fareed and chairman Iowane Naiveli during their Annual General Meeting at the Grand Pacific Hotel yesterday.

Fijian Holdings Limited Group has revealed plans to take a list a number of its existing subsidiaries on the stock exchange.
FHL Group chief executive, Nouzab Fareed, confirmed this would take place within the next 18 to 24 months.
His comments followed after the FHL’s annual general meeting held yesterday at the Grand Pacific Hotel in Suva.
Amongst the companies under consideration are Merchant Finance Limited, Basic Industries, Pacific Cement, South Sea Cruises and FHL Properties Limited.
Mr Fareed said there are two FHL subsidiaries which are already listed on the South Pacific Stock Exchange – namely Fiji Television Limited and RB Patel Group Limited.
“Being a listed company we are enjoying the benefits of being listed because in FHL Balance sheet, we reflect FTV and RB at the market price and also there is big demand,” he said.
“So it is always good to be a listed company. You will get more prominence in the market place, the banks like you, the investors will like you.
“So that is why we feel comfortable taking the companies to public.”

Expansion plans
In the meanwhile, Mr Fareed also highlighted that they want to do business in the whole of Pacific.
But, he said their challenge was that there are not enough businesses for among in the Pacific.
“But we would love to expand our business. There are very few opportunities and if something does come through then we will invest,” he said.
“We are looking at a business in Samoa but it takes time get it right at the moment but we continue to explore our options.”
Mr Fareed returned from Papua New Guinea early this week where he was negotiating the sale of Media Niugini Limited.
“We were looking at new partners and we are looking at divesting or looking for strategic partner for our plant operation as well as looking for new investment options,” he said.
“We are looking at a few but it will take a long time to get it right.”

Clearing air on SKY sale
Also, following numerous concerns over the sale of SKY Pacific, Mr Fareed said they have cleared the air with their shareholders and explained why the sale was necessary.
“I think the shareholders were not aware that SKY Pacific has never ever made profit. So we are keeping a loss making company in the group,” he said.
“So just because we are selling it – we are not doing wrong. By selling SKY Pacific, Fiji TV’s revenue will go down but its profit will go up.
“So we are doing something right for shareholders. There was lack of understanding but we have cleared it up now.”
A lesson learned by FHL and which Mr Fareed said they will keep in mind going forward is engaging the shareholders more and making them aware of decisions.

Life Cinema
FHL investment in the entertainment sector through RB Patel Group is doing extremely well.
And this is why Mr Fareed confirmed further $5 million investment in cinemas at two new locations.
There will be two new cinemas coming up in TappooCity Lautoka as well as three cinemas are being put up in Nakasi.
Mr Fareed said all is in progress and will happen soon as they see big demand in this cinema business.

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